Pay panel arrears in one go in Aug salary

New Delhi, July 29 

The Central Government has decided to pay its employees arrears arising from implementation of the Seventh Pay Commission recommendations in one go in their August salaries.

The government has already notified the 2.57-time hike in basic salary of one crore employees and pensioners as per the recommendations. The pay hike has been made effective from January 1, 2016.

The Finance Ministry also said that the revised pay structure effective from January 1, 2016, would include the Dearness Allowance of 125 per cent provided in the pre-revised pay structure. The rate of the first instalment of DA under revised pay will be announced later.

In order to expedite disbursal of arrears, the instructions said the “arrear claims may be paid without pre-check of the fixation of pay in the revised scales of pay”.

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However, it added, that the facilities to disburse arrears without pre-check of fixation of pay will not be available for those public servants who have retired, resigned or dismissed after the date of implementation of the Pay Commission recommendations.

The minimum pay in Central Government with effect from January 1, 2016 will now be Rs 18,000 per month, up from Rs 7,000. At the highest level of Cabinet Secretary, the salary would go up from Rs 90,000 a month to Rs 2.5 lakh.

There shall be two dates for grant of increment — January 1 and July 1 every year - instead of the existing July 1.

The Income Tax would be deducted before payment of arrears. PTI